10 Traps New Homeowners Fall Into

Submitted by admin on Mon, 11/04/2013 - 09:45 - 0 Comments

Purchasing your very own home is still a treasured part of the American dream. Even after a housing and lending crisis that threatened home ownership for millions of Americans, there is still something very special about taking possession of a property that you own. Unfortunately, there are also a few common pitfalls that many new homeowners aren't aware of until problems arise as a result of them. These are ten of the most common traps that new homeowners fall victim to, and ways that you can avoid them.

Choosing the Wrong Moving Company – When you're moving into a home that you own, there are so many responsibilities that it can often be easier to hire movers, rather than taking that project on yourself. Before you make a commitment to a particular company, however, it's important to make sure that you're choosing the right one for the job. You may be able to save a few bucks by opting for a budget service, but one with a sketchy reputation may not be the best choice. After all, how much money will you actually be saving if you're forced to replace things that have been lost or damaged in transit?
Going Over Budget on Improvements – Making the transition from a rental property you're not allowed to improve to a home that's all yours is a heady thing, and it's tempting to make a ton of upgrades. Buying a fixer-upper can be a great deal, but not if you get in over your head when it comes to improvements. Make sure that you're leaving plenty of room in the budget, as improvement costs can often be significantly higher in the end than the initial estimate.
Gutting or Totally Renovating Before Moving – Renovating and upgrading your new home before you move in is, on the surface, a great idea. You can move in to the home of your dreams without having to live through the upheaval and inconvenience of remodeling the space in which you're trying to start a new life. Waiting a bit to start major overhauls does have it's benefits, though. In addition to finding ways of saving money, you may also find that your mental image of a completed project is a bit different from the end project. In order to know what you truly want and what's best for the space, you'll do better to live in your home for a while. Get a feel for what needs to be changed and what upgrades are important. You may find that your mind has changed after you've lived in your new home long enough to get a feel for the space.
Tackling Large Improvement Projects Alone – Buying a home is a major investment, and one that many first-time buyers sink the majority of their capital into at the time of closing. To save money, it's easier to get your hands dirty by handling small DIY projects. If you don't have the requisite experience, however, taking on a big job can actually be more expensive. By the time you hire someone to complete the vision and correct your mistakes, you may spend more than you would simply contracting the project in the first place.
Hiring Amateur Handymen – If you know that you're not qualified to handle a major project, you still may want to think twice before hiring the new neighbor down the street. Unless he's licensed and has plenty of experience, you may just be paying someone to make a bigger mess.
Missing Tax Credits and Deductions – Filing your income taxes are a horse of a different color when you're a homeowner. There are tax credits and deductions that homeowners can take advantage of, ones that simply aren't available to renters. Make sure that you're working with a tax professional or educating yourself thoroughly before filing on your own after buying property.
Choosing the Wrong Insurance Plan – Your home is a major investment, and should be protected as such. Choosing a cheaper insurance plan may save money in the short term, but leave you in a real fix should you have to file a claim. Choosing the wrong insurance plan is a common rookie mistake, and one that can be quite costly. Make sure that you're taking the time to carefully weigh your options.
Neglecting Routine Maintenance – In the excitement of renovating the kitchen, updating the bathroom and painting every wall in the house, it's easy to lose track of routine maintenance items on your to-do list. It's also easy to forget the things that you're accustomed to leaving up to a landlord. Because neglecting those tasks can lead to big repair bills down the road, it's wise to make sure that you're staying on top of regular maintenance.
Landscaping Mistakes – Having a lawn is a thing of beauty, but only if you're taking care of it properly. Make sure that you learn a bit about landscaping before you plant flowers that can't thrive in your zone, install an irrigation system that floods the lawn or make other unsightly landscaping mistakes.
Missing Maintenance Red Flags – It's not always easy to catch a leak if it's not readily apparent, but missing red flags that indicate leaks, plumbing problems or electrical issues can create quite a headache. Make a point of learning about common maintenance red flags before you move into a place of your own.